Stock Story -
Network chips maker MACOM Technology Solutions (NASDAQ:MTSI) (NASDAQ: MTSI) will be reporting earnings tomorrow before the bell. Here's what to expect.
Last quarter MACOM reported revenues of $150.4 million, down 15.6% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
Is MACOM buy or sell heading into the earnings? Find out by reading the original article on StockStory.
This quarter analysts are expecting MACOM's revenue to decline 15.2% year on year to $152.7 million, a further deceleration on the 12.8% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.57 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 0.7%.
Looking at MACOM's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. Skyworks (NASDAQ:SWKS) Solutions's revenues decreased 9.6% year on year, missing analyst estimates by 0.2% and Texas Instruments (NASDAQ:TXN) reported revenue decline of 12.7% year on year, missing analyst estimates by 1.4%. Texas Instruments was down 3.7%, and Skyworks was up 5.5% on the results.
Read the full analysis of Skyworks Solutions's and Texas Instruments's results on StockStory.
Investors in the semiconductors segment have had steady hands going into the earnings, with the stocks up on average 0.5% over the last month. MACOM is down 2.4% during the same time, and is heading into the earnings with analyst price target of $91.9, compared to share price of $88.08.
The author has no position in any of the stocks mentioned.